A Computer Manufacturer Is Seeking to Cut Costs by Designing

question 39

Multiple Choice

A computer manufacturer is seeking to cut costs by designing an inventory system that reduces the number of finished products in stock due to overproduction and to set in place a production schedule that better matches customers' orders.This is an example of ____.

• A)operations management
• B)scientific management
• C)production management
• D)inventory oversight
• E)inventory analysis

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Definitions:

Accounting Cost

The total amount of money or the monetary value of resources consumed or used in the process of generating revenue, as recorded in financial statements.

Residual Income

The income that remains after all costs and expenses, including any cost of capital, have been deducted.

Income from Operations

The profit generated from a business's core operational activities, excluding income from investments or secondary activities.

Activity Base

A measure used for allocating fixed costs to products or services, based on the activities that drive costs, such as machine hours or labor hours.